The selling pressure continued for third consecutive session and pulled down the Nifty50 way below the 18,000 mark in the previous week. The index settled with a loss of 134 points at 17,765, and the BSE Sensex was down more than 400 points to close below 59,600 on November 18, weighed by correction in all key sectors.
The broader markets was also caught in a bear trap with the Nifty Midcap 100 and Smallcap 100 indices falling more than the benchmarks, down 1.44 percent and 1.63 percent, respectively.
Stocks that were in focus include Vedanta and Bosch which were the biggest losers in the futures and options segment, down 8.5 percent, to close at Rs 309.55 and falling 5.89 percent to Rs 17,779.65, respectively.
Escorts and Chambal Fertilisers were also in action on Thursday, which were the biggest gainers in the F&O segment, rising 10.54 percent to Rs 1,802.85, and climbing 2.71 percent to Rs 365.35, respectively.
Greaves Cotton and Narayana Hrudayalaya, too, were in focus, which gained 2.38 percent at Rs 153 and rose 0.77 percent to Rs 589.95. Trident was locked in a 5-percent upper circuit at Rs 45.20.
Here's what Mehul Kothari of Anand Rathi Shares and Stock Brokers, recommends investors should do with these stocks when the market resumes trading today:
Since April 2020, the stock Trident has rallied from the low of Rs 3 towards the recent high of Rs 45 without any meaningful correction.
The stock seems to be overbought in multiple time frames along with negative divergence on weekly RSI (relative strength index). This indicates a possibility of exhaustion.
Traders and investors holding the stock should follow trailing stop loss of Rs 40 for the coming weeks. On the upside, the stock might be heading towards the Rs 50 – 55 levels but trailing stop loss should be used on upside.
The stock has been trading in a strong uptrend. However, at this point in time, it is heading towards a strong resistance formed by the rising trend line placed near Rs 650 mark. Thus, traders need to be very careful while holding longs near the Rs 650 mark.
On the other had, investors should keep holding the stock until there is any clear confirmation of change of trend. The support is now placed at Rs 500 mark.
The stock recently gave a breakout above Rs 16,000 mark and confirmed an inverse head and shoulder pattern which is bullish in nature. The theoretical target for the pattern comes around Rs 25,000 with a time frame of 6–9 months.
Thus, investors and medium-term traders can continue to hold the stock. The overall support for the stock is at Rs 15,000 and a breach of the same might negate the pattern.
The stock has been consolidating above the placement of 200-Day SMA (simple moving average) since quite some time. In addition, there seems to be no sign of weakness on any time frame. The stock is poised for some decent upside as suggested by the daily RSI.
Traders can hold the stock with a stop loss of Rs 130, while investors should continue to hold the stock with a stop loss of Rs 110. On the upside, it has the potential to reach Rs 200 and more levels in the coming month.
Here's what Shrikant Chouhan of Kotak Securities, recommends investors should do with these stocks when the market resumes trading today:
The stock has rallied over 11 percent on November 18. Today, after a muted opening, the stock quickly surpassed Rs 1,700 resistance mark with strong volume activity. Despite weak market conditions Escorts maintained its strong momentum.
On the short-term time frame, the stock has formed strong price-volume breakout pattern. The texture of the pattern suggests that breakout action will continue in the near term if the stock succeeds to trade above the Rs 1,720-1,740 level.
For the breakout traders, Rs 1,720 could be the sacrosanct level, trading above the same we can expect uptrend continuation wave up to Rs 1,865-1,975.
Chambal Fertilisers and Chemicals
After a quick pullback rally, the stock is trading within a range of Rs 345-375. After a double-bottom formation, the stock is now trading near 50 and 20-day SMA. The daily and weekly charts formation indicate strong possibility of fresh uptrend from current levels.
In addition, on weekly charts, the stock has formed promising reversal formation which is broadly positive for Chambal Fertilisers and Chemicals. As long as the stock is trading above 50-day SMA or Rs 345, the uptrend is intact and could continue up to Rs 390-405. On the flip side, below Rs 345 uptrend would be vulnerable.
On Thursday, the stock fell nearly 10 percent. On daily and weekly charts, it has formed long bearish candle which suggests temporary weakness. However, the intraday and daily trading set up indicating non-directional activity is likely to continue in the near future.
For the bulls, Rs 325 would be the important trend reversal level to watch out. And, if the stock manages to close above the same, we can expect quick uptrend rally towards Rs 345. On the flip side, trading below Rs 300 may increase further weakness up to Rs 290-280.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.